One of Canada's big banks recently announced a new loan program for young Canadian farmers.
The goal is to support farmers under the age of 35 who are already in the industry, or those looking to choose agriculture as a career path, by offering loans of up to $1 million.
Annessa Good with GRS Consulting says, while this new access to cash flow is exciting, it may be too easy to get credit, which isn't only a problem for the agriculture industry.
"We've had really good years in ag the last couple years, and so we want to make sure the payment ability that we're speaking to is what we're able to do. We've had dry conditions, so now we're (lacking) sub-soil and moisture levels, so if you come back and our production levels aren't where they've been historically for say the last five, ten years, can we still meet that repayment ability?"
However, Good says these loans provide the next generation with opportunities to grow the farm business through value added products and exploring niche markets.
"There's unique opportunities that we have to look at capitalizing on as young people coming in, and that's our job as young people. Looking outside the box and seeing what we can bring to agriculture."
Source : Steinbachonline